Energy
Energy market stories covering oil prices, commodities, and the forces shaping global energy markets.
30% Surge: How XLU Became an AI Growth Sector
Energy • Investing • ETFs • Utilities • AI Infrastructure • Growth Investing
XLU surged 30% in 2024, outpacing the S&P 500. Data centers could consume 8% of US power by 2030, up from 3% today. NextEra and Constellation Energy are positioning for AI's insatiable power demand. The boring dividend sector became critical AI infrastructure.
NextEra and Constellation comprise 21% of XLU holdings. The fund yields 2.3% annually while offering AI infrastructure exposure. Data center power demand could grow 167% by 2030. Dividends plus growth in one sector.
Traders Paid $37 to Give Away Oil: The Day Futures Broke
Energy • Oil • Commodities • Futures • COVID-19
April 20, 2020: WTI crude futures fell to -$37 per barrel. First negative price in 37 years of trading. COVID crushed demand by 30%. Cushing, Oklahoma hit 83% storage capacity. Speculators holding paper oil had nowhere to put the real thing. They paid buyers to take it.
WTI hit -$37 while Brent stayed at +$19.33. Same commodity. Different contract. One requires physical delivery in Cushing, Oklahoma. When storage hit 83% and demand fell 30%, paper traders paid to escape. Every futures contract has a delivery mechanism. Know yours.